Starboard pushes News Corp to sell REA Group stake
New York | Activist investor Starboard Value, which has built a position in News Corp, wants the Murdoch-family controlled media giant to separate its Australian real estate business.
News Corp is “significantly undervalued” and unloading its 61 per cent stake in REA Group could help unlock more than $US7 billion ($11 billion) for shareholders, Starboard said in an investor presentation on Tuesday.
ASX-listed REA is Australia’s largest real estate listings company. Glenn Hunt
Doing so would also highlight the value of News Corp’s other assets, including Dow Jones, Harper Collins, the New York Post and Foxtel, Starboard said at the 13D Monitor Active-Passive Investor Summit in New York.
Dow Jones alone would be worth more than $US7 billion if it were valued at a similar multiple as the New York Times as it is more profitable and has a greater subscription mix, Starboard said.
“We believe News Corp’s collection of assets is worth over $US33 per share,” Starboard said. “Even when using conservative assumptions, News Corp has an opportunity to create significant shareholder value through a separation of certain assets.”
News Corp rose 0.8 per cent to $US22.06 at 12.37pm (1.37am AEDT) trading, giving the company a market value of $US12.7 billion. The stock has gained about 37 per cent in the past year.
“We have always maintained an active and engaged dialogue with our investors and are committed to driving shareholder value,” a News Corp a statement read.
“We remain focused on executing our strategic plan, which has helped us set records in profitability over the past three years. We are proud of our rapid digital transformation and bright prospects for long-term growth and value creation.”
News Corp is in a transitional
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